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Tentpeg

Rookies Guide To Investing

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I think it's high time I started to learn more about investing than just ISAs and erm....ISAs :huh:

Frankly I find the whole thing mind boggling. I've always considered myself risk averse with money, but having spent time on this site, it's apparent there's a whole world of investment out there beyond what the high street banks offer. Oh sure, I've heard of the stock market, I've heard it goes up and down, I've heard that people make and lose money, but until recently, I've never really considered what it all meant.

That's not as daft as it first sounds - probably the majority of the population have become accustomed to getting information from the mainstream media (I smell a VI theory coming on), and have possibly become unaccustomed to searching elsewhere - me included.

I've decided to allocate a small sum (you'd laugh if I told you) into finding out how much more I can make with it than just leaving it in an ISA. For this foray into the unknown I'm ditching the risk aversion. That doesn't mean I want to put it on the horses, shady deals, property, or personal cheques to forum members ;)

I'm not looking for financial advice on specific fund thingies (is that a correct term?), just a pointer toward the type of cosher investments that can give high returns, and any literature the seasoned investor found helpful when they started out.

Apologies if this has already been covered elsewhere.

Much appreciated.

T.P.

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If it is a small sum, charges will eat away at it. Halifax sharebuilder is a cheap way to start, you buy into markets with other people, so there can be delay in when you buy and sell. Alternatively take a look at index trackers, these can be purchased from fund supermarkets for next to no commission. Have a look at www.fool.co.uk to get yourself started!

Spread you risk is another tip, don't buy just one share, one sector, one investment.

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If it is a small sum, charges will eat away at it. Halifax sharebuilder is a cheap way to start, you buy into markets with other people, so there can be delay in when you buy and sell. Alternatively take a look at index trackers, these can be purchased from fund supermarkets for next to no commission. Have a look at www.fool.co.uk to get yourself started!

Spread you risk is another tip, don't buy just one share, one sector, one investment.

Thanks for the pointers. I hadn't considered the charges, learnt something already :)

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Thanks for the pointers. I hadn't considered the charges, learnt something already :)

I use hoodless brenan, they have a flat £7 a deal charge (squaregain is £12 I think), so if I buy and sell £1400 of shares, that equates to 1%. Therefore the larger the deal, the less effect the charge has.

Stamp duty on purchases is 0.5% as well. The bid/offer spread also eats into any profits, this is low for large stocks <0.25% but can be 5%+ for small cap and aim shares.

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If it is a small sum, charges will eat away at it. Halifax sharebuilder is a cheap way to start, you buy into markets with other people, so there can be delay in when you buy and sell.

Traditionally known as a "bucket shop", god I love the Halifax.

Edited by BuyingBear

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Traditionally known as a "bucket shop", god I love the Halifax.

No halifax share builder is a rare thing it's a brokerage that aggregates orders, e.g a deal will cost you 10$ so you wait for someone else to come along and buy in a group and split the commision charge.

I have a share builder account to trickle money from my current account into equities every single month. I do nothing 0 effort. just auto Dollar cost averaging every month

eash month.

I get paid....

1. auto card-purchase deposit 300# GBP to halifax

auto purchase 100GBP of XXX stock - commision 1.5 quid

auto purchase 200GBP of YYY stock commision 1.5quid

job done. I drip feed into some v illiquid stocks so I do check that they really do purchase those stocks. you can do this on a site like digital look that prints all of the trades as they happen (15min delayed).

...On the other hand many of the spread betters that are out there REALLY are bucketers.

my best advice for a rookie (investor) though is to

1. don't loose money

2. never forget rule 1.

an investor is a very different guy to a trader/speculator. I suggest you stay a investor.

Edited by jonpo

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No halifax share builder is a rare thing it's a brokerage that aggregates orders

Yes, that's called a bucket shop! I know exactly what Halifax is, they don't fulfil orders at market prices, they create their own market.

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Guest wrongmove

Yes, that's called a bucket shop! I know exactly what Halifax is, they don't fulfil orders at market prices, they create their own market.

Hi Tentpeg. IMHO Halifax sharebuilder (HSB) is an excellent way to familiarise yourself with share dealing at a very low cost. It is not a bucket shop. It simply pools orders 4 times a month to keep costs very low, i.e. £1.50 per buy. The disadvantage is that you cannot buy "realtime" for £1.50, the order is placed on 4 dates a month. I have bought and sold many times through HSB and the prices acheived have always been within the quoted spreads (i.e. at market prices). Selling on HSB is the same as with any broker - it is realtime, you get a quote and decide whether or not you want to take the price. Selling costs much the same as any other broker as sales are not pooled like buys (£5 for sells less than £250, £12.50 for sales greater than £250). You can also buy realtime for £12.50. There are no annual fees.

Lots more (independent) info here TMF - Halifax Sharebuilder Forum

I like HSB for pound cost averaging into relatively long term shares at a very low cost. Pound cost averaging simply means buying a small amount on a regular basis to smooth out the peaks and troughs of the market.

Edited by wrongmove

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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